The Financial Industry Regulatory Authority (FINRA) recently released an
investor alert about behaviors potentially fraudulent financial professionals
often engage in. It’s important to keep a close eye on your investments
no matter how much you trust your broker, and remaining vigilant throughout
the course of your professional relationship can make the difference in
spotting fraud before it has serious financial implications. Some behaviors
FINRA highlighted include:
Asking You to Write a Check to Someone or Something Other Than the Broker’s Firm: All deposits should be made directly to the firm itself, and you should
immediately be wary any time your financial advisor pitches you an investment
opportunity that requires you to write a check to either them or to a
Using Personal Email Accounts For Communication: Among the many ways FINRA protects investors is by requiring registered
firms to maintain and preserve communication records between their members
and investors. This documentation helps regulators and firms ensure that
recommendations you receive are appropriate, and that your broker isn’t
making false claims.
Selling Promissory Notes: Promissory notes, while sometimes are legitimate forms of investment,
more often are fraudulent and used as part of scams. These notes are primarily
offered to accredited and corporate investors – unless you fall
in one of those categories, you should proceed with caution.
Asking for Personal Loans: Brokers are prohibited by FINRA to borrow money from their clients. If
your broker asks you for a loan, you should contact their supervisor immediately.
If you lost money due to the negligent or wrongful actions of your financial
professional, our investment fraud lawyers at Meyer Wilson are ready to
provide you with the legal assistance you require. Call us at one of our
offices located across the United States today, or
fill out our online form to schedule a free case consultation with a member of our firm.